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BUSINESS STUDIES P2

EXEMPLAR 2020

MARKING GUIDELINES

GRADE 12

NATIONAL SENIOR CERTIFICATE

Business Studies/P2 2 DBE/2020 NSC ‒ Exemplar ‒ Marking Guidelines

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NOTES TO MARKERS

PREAMBLE

The notes to markers are provided for quality assurance purposes to ensure the following: (a) Fairness, consistency and reliability in the standard of marking (b) Facilitate the moderation of candidates' scripts at the different levels (c) Streamline the marking process considering the broad spectrum of markers across

the country (d) Implement appropriate measures in the teaching, learning and assessment of the subject

at schools/institutions of learning 1. For marking and moderation purposes, the following colours are recommended:

Marker: Senior Marker: Deputy Chief Marker: Chief Marker: Internal Moderator: DBE Moderator:

Red Green Brown Pink Orange Turquoise

2. Candidates' responses must be in full sentences for SECTIONS B and C.

However, this would depend on the nature of the question.

3. A comprehensive marking guideline has been provided but this is by no means

exhaustive. Due consideration should be given to an answer that is correct but:

• Uses a different expression from that which appears in the marking guideline

• Comes from another credible source • Original • A different approach is used

NOTE: There is only ONE correct answer in SECTION A.

4.

Take note of other relevant answers provided by candidates and allocate marks accordingly. (In cases where the answer is unclear or indicates some understanding, part-marks should be awarded, for example, one mark instead of the maximum of two marks.)

5.

The word 'Submax' is used to facilitate the allocation of marks within a question or subquestion.

6.

The purpose of circling marks (guided by 'max' in the breakdown of marks) on the right-hand side is to ensure consistency and accuracy in the marking of scripts as well as for calculation and moderation purposes.

7. Subtotals to questions must be written in the right-hand margin. Circle the

subtotals as indicated by the allocation of marks. This must be guided by 'max' in the marking guidelines. Only the total for each question should appear in the left-hand margin next to the appropriate question number.

8. In an indirect question, the theory as well as the response must be relevant and related to the question.



9. Correct numbering of answers to questions or subquestions is recommended in

SECTIONS A and B. However, if the numbering is incorrect, follow the sequence of the candidate's responses. Candidates will be penalised if the latter is not clear.

10. No additional credit must be given for repetition of facts. Indicate with an 'R'. 11. The differentiation between 'evaluate' and 'critically evaluate' can be explained

as follows:

11.1 When 'evaluate' is used, candidates are expected to respond in either

a positive/negative manner or take a neutral (positive and negative) stance, e.g. Positive: 'COIDA eliminates time and costs spent√ on lengthy civil court proceedings.'√

11.2 When 'critically evaluate' is used, candidates are expected to respond

in either a positive/negative manner or take a neutral (positive and negative) stance. In this instance candidates are also expected to support their responses with more depth, e.g. 'COIDA eliminates time and costs spent√ on lengthy civil court proceedings√, because the employer will not be liable for compensation to the employee for injuries sustained during working hours as long as it can be proved that the business was not negligent.'√

NOTE: 1. The above could apply to 'analyse' as well. 2. Note the placing of the tick (√) in the allocation of marks. 12. The allocation of marks must be informed by the nature of the question,

cognitive verb used, mark allocation in the marking guideline and the context of each question.

Cognitive verbs, such as: 12.1 Advise, name, state, outline, motivate, recommend, suggest, (list not

exhaustive) do not usually require much depth in candidates' responses. Therefore, the mark allocation for each statement/answer appears at the end.

12.2 Define, describe, explain, discuss, elaborate, distinguish, differentiate,

compare, tabulate, justify, analyse, evaluate, critically evaluate (list not exhaustive) require a greater depth of understanding, application and reasoning. Therefore, the marks must be allocated more objectively to ensure that assessing is conducted according to established norms so that uniformity, consistency and fairness are achieved.

13. Mark only the FIRST answer where candidates offer more than one answer for

SECTION B and C questions that require one answer.



14.

SECTION B

14.1 If for example, FIVE facts are required, mark the candidate's FIRST FIVE

responses and ignore the rest of the responses. Indicate by drawing a line across the unmarked portion or use the word 'Cancel'. NOTE: This applies only to questions where the number of facts is specified.

14.2 If two facts are written in one sentence, award the candidate FULL credit.

Point 14.1 above still applies.

14.3 If candidates are required to provide their own examples/views, brainstorm this

at the marking centre to finalise alternative answers.

14.4 Use of the cognitive verbs and allocation of marks: 14.4.1 If the number of facts are specified, questions that require candidates

to 'describe/discuss/explain' may be marked as follows:

• Fact 2 marks (or as indicated in the marking guidelines) • Explanation 1 mark (two marks will be allocated in Section C) The 'fact' and 'explanation' are given separately in the marking guideline to facilitate mark allocation.

14.4.2 If the number of facts required is not specified, the allocation of marks

must be informed by the nature of the question and the maximum mark allocated in the marking guideline.

14.5 ONE mark may be awarded for answers that are easy to recall, requires

one word answers or is quoted directly from a scenario/case study. This applies to SECTIONS B and C in particular (where applicable).

15. SECTION C 15.1 The breakdown of the mark allocation for the essays is as follows:

Introduction Maximum: 32 Content

Conclusion Insight 8 TOTAL 40



15.2 Insight consists of the following components:

Layout/Structure Is there an introduction, a body, and a conclusion? 2 Analysis and interpretation

Is the candidate able to break down the question into headings/subheadings/interpret it correctly to show understanding of what is being asked?

2

Marks to be allocated using this guide: All headings addressed: 1 (One 'A') Interpretation (16 to 32 marks): 1 (One 'A')

Synthesis

Are there relevant decisions/facts/responses made based on the questions?

2

Marks to be allocated using this guide: No relevant facts: 0 (Two '-S') Some relevant facts: 1 (One '-S') Only relevant facts: 2 (No '-S') Option 1: Where a candidate answers 50% or more of

the question with only relevant facts; no '-S' appears in the left margin. Award the maximum of TWO (2) marks for synthesis.

Option 2: Where a candidate answers less than 50% of the question with only OR some relevant facts; one '-S' appears in the left margin. Award a maximum of ONE (1) mark for synthesis.

Option 3: Where a candidate answers less than 50% of the question with no relevant facts; two '-S' appear in the left margin. Award a ZERO mark for synthesis.

Originality Is there evidence of examples based on recent information, current trends and developments?

2

TOTAL FOR INSIGHT: TOTAL MARKS FOR FACTS:

TOTAL MARKS FOR ESSAY (8 + 32):

8 32 40

NOTE: 1. No marks will be awarded for contents repeated from the

introduction and conclusion.

2. The candidate forfeits marks for layout if the words

INTRODUCTION and CONCLUSION are not stated.

3. No marks will be awarded for layout, if the headings

INTRODUCTION and CONCLUSION are not supported by an explanation.

15.3 Indicate insight in the left-hand margin with a symbol e.g. ('L, A, -S and/or O'). 15.4 The breakdown of marks is indicated at the end of the suggested answer/

marking guideline to each question.



15.5 Mark all relevant facts until the SUBMAX/MAX mark in a subsection has been

attained. Write SUBMAX/MAX after maximum marks have been obtained, but continue reading for originality 'O'.

15.6 At the end of each essay indicate the allocation of marks for facts and marks

for insight as follows: (L – Layout, A – Analysis, S – Synthesis, O – Originality) as in the table below.

CONTENT MARKS

Facts 32 (max.) L 2 A 2 S 2 O 2

TOTAL 40 15.7 When awarding marks for facts, take note of the submaxima indicated,

especially if candidates do not make use of the same subheadings. Remember, headings and subheadings are encouraged and contribute to insight (structuring/logical flow/sequencing) and indicate clarity of thought. (See MARK BREAKDOWN at the end of each question.)

15.8 If the candidate identifies/interprets the question INCORRECTLY, then

he/she may still obtain marks for layout.

15.9

If a different approach is used by candidates, ensure that the answers are assessed according to the mark allocation/subheadings as indicated in the marking guideline.

15.10 15.10.1 Award TWO marks for complete sentences. Award ONE mark for

phrases, incomplete sentences and vague answers.

15.10.2 With effect from November 2015, the TWO marks will not

necessarily appear at the end of each completed sentence. The ticks (√) will be separated and indicated next to each fact, e.g. 'Product development is a growth strategy √, where businesses aim to introduce new products into existing markets.'√

This will be informed by the nature and context of the question, as well as the cognitive verb used.

15.11 With effect from November 2017, the maximum of TWO (2) marks for facts

shown as headings in the marking guidelines, will not necessarily apply to each question. This would also depend on the nature of the question.



SECTION A QUESTION 1 1.1 1.1.1 C√√

1.1.2 B√√ 1.1.3 A√√ 1.1.4 D√√ 1.1.5 B√√

(5 x 2) (10) 1.2 1.2.1 compound interest√√

1.2.2 retirement annuities√√ 1.2.3 language√√ 1.2.4 employer√√ 1.2.5 decision making√√

(5 x 2) (10) 1.3 1.3.1 I√√

1.3.2 G√√ 1.3.3 H√√ 1.3.4 F√√ 1.3.5 J√√

(5 x 2) (10) TOTAL SECTION A: 30

BREAKDOWN OF MARKS QUESTION 1 MARKS

1.1 10 1.2 10 1.3 10

TOTAL 30



SECTION B

Mark only the FIRST TWO answers.

QUESTION 2: BUSINESS VENTURES

2.1 Example of insurable risks - Theft√ - Fidelity insurance√ - Burglary√ - Money in transit√ - Fire√ - Natural disaster/Storms/Wind/Rain/Hail√ - Damage to/Loss of assets/vehicles/ equipment/buildings/premises√ - Injuries on premises√ - Any other relevant example related to insurable risks. NOTE: Mark the first FOUR (4) only.

(4x1) (4)

2.2 Principles of insurance - Indemnification/Indemnity√ - Security/Certainty√ - Utmost good faith√ - Insurable interest√

NOTE: Mark the first FOUR (4) only. (4 x 1) (4)

2.3 Leadership theory 2.3.1 Situational leadership theory√√ (2)

2.3.2 Situational leadership theory - Different leadership characteristics√ are needed for different situations.√ - The task/situation dictates the leadership style that should be applied√, so leaders

are adaptable/flexible/self-assured.√ - Effective application of this theory may enable leaders√ to accomplish their

goals.√ - Relationships between leaders and employees√ are based on mutual

trust/respect/loyalty/integrity/honesty.√ - Leaders have the ability to analyse the situation/get the most suitable people in

the right positions√ to complete tasks successfully.√ - Leaders analyse group members/objectives/time constraints√, to adopt a

suitable/relevant leadership style.√ - May lead to conflict√ when leaders use different leadership styles/when managing

employees in different situations.√ - The success of this theory depends on the kind of relationship that exists√

between the leader and followers/subordinates/employees.√ - Any other relevant answer related to the situational leadership theory. NOTE: Accept relevant facts if the situational leadership theory was incorrectly identified in QUESTION 2.3.1.

Max (6)



2.4 Distinction between a private company and a public company

PRIVATE COMPANY PUBLIC COMPANY - May not offer shares√ to the general

public.√ - Trades its shares publicly√ on the

Johannesburg Securities Exchange (JSE).√ - Shares are not√ freely transferable√ - Shares are freely√ transferable. √

- Minimum of one director.√ - Minimum of three directors.√

- Name must end√ with Proprietary Limited/(Pty) Ltd.√

- Name must end√ with Limited/Ltd.√

- Annual financial statements need not be audited√ and published.√

- Annual financial statements need to be audited√ and published.√

- Does not need to publish a prospectus√ as it cannot trade its shares publicly.√

- Have to register and publish a prospectus√ with the Companies and Intellectual Property Commission/CIPC.√

- The company is not required to raise√ the minimum subscription/ issue minimum shares.√

- Must raise a minimum subscription prior√ to commencement of the company.√

- Any other relevant answer related to a private company.

- Any other relevant answer related to a public company.

Submax (4) Submax (4) NOTE: 1. The answer does not have to be in tabular format. 2. The distinction does not have to link, but must be clear.

3. Award a maximum of FOUR (4) marks if the distinction is not clear/Mark either a private company or a public company.

Max (8) 2.5 Leadership 2.5.1 Roles of personal attitude in successful leadership from the scenario

- He has a positive attitude and knows that there is always more to learn. √ - Sihle models the behaviour that he wants to see in his followers. √ NOTE: 1. Mark the first TWO (2) only. 2. Only award marks for responses that are quoted from the

scenario. (2 x 1) (2)

2.5.2 Impact of democratic leadership style

Positives/Advantages - Employees participate in the decision making process√, so they feel

empowered/positive. √ - Staff gives a variety of ideas/inputs/feedback/viewpoints √ that can lead to

innovation/improved production methods/increased sales. √ - Clear/Two-way communication ensures group commitment√ to final

decision(s).√ - Authority is delegated which can motivate/inspire workers√ to be more

productive. √ - Complex decisions can be made with inputs√ from specialists/skilled workers.√ - Any other relevant answer related to the positive impact/advantages of the

democratic leadership style on MH as a business.

AND/OR



Negatives/Disadvantages

- Incorrect decisions may be made√ if staff is inexperienced/not fully informed. √ - Decision making may be time consuming√ because stakeholders have to be

consulted. √ - Employees may feel discouraged√ if their opinions/inputs are not considered. √ - The leader can rely too much on the input of the followers√ and fail to make a

final decision. √ - Not effective in times of crisis√ when quick decisions need to be made.√ - Some employees only pretend to participate in decision making√ and their

feedback may not always be accurate. √ - Any other relevant answer related to the negative impact/disadvantages of the

democratic leadership style on MH as a business. Max (8)

2.6 Impact of a PowerPoint presentation as a visual aid

Positives/Advantages - Graphic programmes have the capacity to convey ideas√ and support what the

presenter says. √ - Easy to combine√ with sound/video clips. √ - Simple/Less cluttered slides√ may capture the interest of the audience. √ - Video clips can provide variety√ and capture the attention of the audience. √ - Variation of colour/background/sound immediately captures the attention of the

audience√ and retain their interest throughout the presentation. √ - Slides should only be used√ where they can enhance the facts or summarise

information. √ - Any other relevant answer related to the positive impact/advantages of a

PowerPoint presentation as a visual aid.

AND/OR Negatives/Disadvantages - Unprofessional handling of the data projector/PowerPoint presentation material√

may lead to irritation/may result in the audience losing interest. √ - Less effective√ to people with visual impairments. √ - Simply reading off the slides√ makes a presentation boring/meaningless. √ - Unable to show slides√ without electricity/data projector. √ - Any other relevant answer related to the negative impact/disadvantages of a

PowerPoint presentation as a visual aid. - Max (6)

BREAKDOWN OF MARKS

QUESTION 2 MARKS 2.1 4 2.2 4

2.3.1 2 2.3.2 6 2.4 8

2.5.1 2 2.5.2 8 2.6 6

TOTAL 40



QUESTION 3: BUSINESS ROLES 3.1 Steps in problem-solving

- Identify the problem.√ - Define the problem.√ - Identify possible solutions to the problem.√ - Select the most appropriate alternative.√ - Develop an action plan.√ - Implement the suggested solution/action plan.√ - Monitor the implementation of the solution/action plan.√ - Evaluate the implemented solution.√ - Any other relevant answer related to the steps in problem-solving. NOTE: 1. Mark the first FOUR (4) only. 2. Steps may be in any order. 3. Award marks when different approaches in problem-solving

are used. (4 x 1) (4)

3.2 Human rights in the workplace - Privacy √ - Dignity √ - Equity√ - Freedom of speech and expression√ - Information√ - Safety, security and protection of life√ NOTE: Mark the first FOUR (4) only. (4 x 1) (4)

3.3 Corporate social investment/CSI 3.3.1 Examples of CSI from the scenario

- They decided to invest in communities by donating school uniforms. √ - Sporting facilities were also provided by JT to promote a healthy lifestyle. √

(2 x 1) (2) NOTE: 1. Mark the first TWO (2) only. 2. Only award marks for responses that are quoted from the

scenario. 3.3.2 Impact of CSI on a business

Positives/Advantages - JT may attract experienced employees/increase the pool of skilled labour√ which

could increase productivity.√ - Positive/Improved image√ as the business looks after employees/conducts itself in

a responsible way.√ - May have a competitive advantage√, resulting in good publicity/an improved

reputation.√ - Promotes customer loyalty√ resulting in more sales.√ - CSI projects may be used as a marketing strategy√ to promote their products.√ - JT enjoys the goodwill/support√ of communities.√ - CSI projects promote teamwork√ within businesses.√ - CSI helps to attract investors√ because of increased profits/income.√ - Gives JT tax advantages√ such as tax reduction/-rebates.√ - The government is less likely to enforce issues through legislation√ to businesses

that voluntarily participate in CSI projects.√



- Employees feel as if they are making a difference√ in working for the business.√ - It helps to retain staff/lower staff turnover√ as employees' health and safety are

considered.√ - Improves the health of its employees√ through focused CSI projects.√ - JT can become more community-based√ by working closely with the community to

roll out skills development projects.√ - Any other relevant answer related to the positive impact/advantages of CSI on JT

as a business. AND/OR

Negatives/Disadvantages - JT may not be supported/Customers may not buy their products/services√ resulting

in a decrease in sales.√ - Small and medium enterprises find it difficult√ to implement CSI programmes.√ - Detailed reports must be drawn up√, which can be time consuming.√ - Social spending reduces business/economic efficiency√ which makes it less

competitive.√ - Social involvement is funded from business profits√ which could have been used to

the benefit of customers/reduce prices.√ - CSI activities distract business focus√ from its core business functions.√ - JT finds it difficult√ to adhere to legislation governing CSI.√ - It can increase financial risk√, as programmes cost money and may impact

negatively on profits.√ - It is difficult to accurately measure√ the effectiveness of social investment.√ - It is not easy to determine the exact needs of the communities√, which may result in

fruitless expenditure on CSI.√ - Most managers are not trained/lack experience√ to handle social programmes.√ - Employees may spend more time working on CSI projects√ instead of focusing on

their core duties.√ - Providing goods/services that meet the needs of consumers is√, according to some

stakeholders, already socially responsible.√ - Shareholders/Stakeholders may receive less dividends√, as some profits are spent

on CSI.√ - Some shareholders/stakeholders might withdraw their support from the business√

as they feel that social issues should be the government's responsibility.√ - Any other relevant answer related to the negative impact/disadvantages of CSI on

JT as a business. Max (4)

3.4 Criteria for successful team performance Interpersonal attitudes and behaviour√√ - Members have a positive attitude of support and motivation towards each other.√ - Good/Sound interpersonal relationships will ensure job satisfaction/increase

productivity of the team.√ - Members are committed / passionate towards achieving a common goal/

objectives.√ - Team leader acknowledges/gives credit to members for positive contributions.√ - Any other relevant answer related to interpersonal attitudes and behaviour as

criteria for successful team performance. Criteria (2)

Description (1) Submax (3)



Shared values/Mutual trust and support√√ - Shows loyalty/respect/trust towards team members despite differences.√ - Shows respect for the knowledge/skills of other members.√ - Perform team tasks with integrity/pursuing responsibility/meeting team deadlines

with necessary commitment to team goals.√ - Any other relevant answer related to shared values/mutual trust and support as

criteria for successful team performance. Criteria (2)


Communication√√ - A clear set of processes/procedures for team work ensures that every team

member understands his/her role.√ - Efficient/Good communication between team members may result in quick

decisions.√ - Quality feedback improves the morale of the team.√ - Open/Honest discussions lead to effective solutions of problems.√ - Continuous review of team progress ensures that team members can rectify

mistakes/act pro-actively to ensure that goals/targets are reached.√ - Any other relevant answer related to communication as criteria for successful team

performance. Criteria (2)


Co-operation/Collaboration√√ - Clearly defined realistic goals are set, so that all members know exactly what is to

be accomplished.√ - Willingness to co-operate as a unit to achieve team objectives.√ - Co-operate with management to achieve team/business objectives.√ - Agree on methods/ways to get the job done effectively without wasting time on

conflict resolution.√ - All members take part in decision making.√ - A balanced composition of skills/knowledge/experience/expertise ensures that

teams achieve their objectives.√ - Any other relevant answer related to co-operation/collaboration as criteria for

successful team performance. Criteria (2)


NOTE: Mark the first TWO (2) only. (2 x 3) (6)



3.5 Problem solving techniques from the scenario

PROBLEM SOLVING TECHNIQUE

MOTIVATION

1. Brainstorming√√

Employees were requested to suggest new ideas in a large group without working individually/These ideas were used to inspire new thoughts.√

2. Force-field analysis√√

The management of SF evaluated the advantages and disadvantages of each idea.√

Submax (4) Submax (2)

NOTE: 1. Award marks for the problem solving technique even if the quote is incomplete

2. Do not award marks for the motivation if the problem solving techniques were incorrectly identified.

Max (6) 3.6 Correct procedure on how to deal with grievances

- An aggrieved employee must verbally report the incident/grievance√ to his/ her supervisor/manager. √

- Supervisor/ Manager need to resolve the issue√ within 3 to 5 working days. √ - Should the employee and supervisor not be able to resolve the grievance√, the

employee may take it to the next level of management.√ - The employee may move to a more formal process√ where the grievance must

be lodged in writing/completes a business grievance form.√ - The employee must receive a written reply√ in response to the written

grievance.√ - A grievance hearing/meeting must be held√ with all relevant parties present.√ - Minutes of the meeting must be recorded√ and any resolution passed must be

recorded on the formal grievance form.√ - Should the employee not be satisfied, then he/she could refer the matter√ to the

highest level of management.√ - Minutes of this meeting should be filed/recorded√ and the outcome/ decision

must be recorded on the formal grievance form.√ - Should the employee still not be satisfied, he/she may refer the matter√ to the

CCMA.√ - If the employee is still not satisfied, he/she may refer the matter√ to Labour

Appeals Court who will make a final decision on the matter.√ - Any other relevant answer related to the correct procedure on how to deal with

grievances in the workplace. NOTE: Accept the procedure in any order.

Max (8)



3.7 Ways to create an environment that stimulates creative thinking in the workplace

- Businesses must emphasise the importance of creative thinking to ensure that all staff know that their ideas will be heard.√√

- Encourage staff to come up with new ideas/opinions/solutions.√√ - Make time for brainstorming sessions to generate new ideas, e.g. regular

workshops/follow up sessions to build on one another's ideas.√√ - Place suggestion boxes around the workplace and keep communication

channels open for new ideas.√√ - Businesses should train staff in innovative techniques/creative problem solving

skills/mind-mapping/lateral thinking.√√ - Encourage job swops within the organisation/studying how other businesses are

doing things.√√ - Encourage alternative ways of working/doing things/Encourage a spirit of play

and experimentation.√√ - Respond enthusiastically to all ideas and never let anyone feel less important.√√ - Reward creativity with reward schemes for teams/individuals that come up with

creative ideas.√√ - Provide a working environment conducive to creativity, free from distractions.√√ - Any other relevant answer related to ways in which businesses could create an

environment that stimulates creative thinking in the workplace. NOTE: The emphasis is on ‘ways businesses could create an environment

that stimulates creative thinking' not advantages. Max (6)

[40]

BREAKDOWN OF MARKS QUESTION 3 MARKS

3.1 4 3.2 4

3.3.1 2 3.3.2 4 3.4 6 3.5 6 3.6 8 3.7 6

TOTAL 40 QUESTION 4: MISCELLANEOUS TOPICS BUSINESS VENTURES 4.1 Types of business investment opportunities 4.1.1 Fixed deposit√√ 4.1.2 Shares√√

(4)



4.2 Factors that should be considered when preparing for a presentation

- Clear purpose/intentions/objectives and main points of the presentation. √√ - Main aims captured in the introduction/opening statement of the presentation.√√ - Information presented should be relevant and accurate. √√ - Fully conversant with the content/objectives of the presentation.√√ - Background/diversity/size/pre-knowledge of the audience to determine the

appropriate visual aids.√√ - Prepare a rough draft of the presentation with a logical structure/format with an

introduction, body and conclusion.√√ - The conclusion must summarise the key facts and how it relates to the

objectives/shows that all aspects have been addressed.√√ - Create visual aids/graphics that will consolidate the information/facts to be

conveyed to the board of directors.√√ - Find out about the venue for the presentation, e.g. what equipment is

available/appropriate/availability of generators as backup to load shedding.√√ - Consider the time frame for presentation, e.g. fifteen minutes allowed.√√ - Rehearse to ensure a confident presentation/effective use of time

management.√√ - Prepare for the feedback session, by anticipating possible questions/

comments. √√ - Any other relevant answer related to factors that should be considered when

preparing for a presentation. NOTE: Mark the first TWO (2) only. (2x2) (4)

4.3 Return on investment as a factor to consider when making investment decisions

- Refers to income from the investment√, namely interest/dividends/increased capital growth on the original amount invested.√

- The return should be expressed as net after-tax gains√ on the investment.√ - High risk investments √ yield higher returns.√ - Generally, there will be a direct link√ between risk and return.√ - Returns can be in the form of capital gains√ where the asset appreciates in

value over time.√ - The net after-tax return√ should be higher than the inflation rate.√ - Any other relevant answer related to return on investment as a factor that may

be considered when making investment decisions. Max (4)



4.4 Differences between leadership and management

LEADERSHIP MANAGEMENT - Influences human behaviour. √ - Guides human behaviour. √ - Communicates by means√ of inter-

action/behaviour/vision/values/ charisma. √

- Communicates through management functions√, e.g. line function√

- Encourages new ideas√ to increase productivity. √

- Administers plans/programs/tasks√ to reach targets. √

- Focuses on what√ and why√ - Focuses on how√ and when. √ - Does the right things. √ - Does things right. √ - Focuses on the horizon √ to take long-

term decisions. √ - Focuses on the bottom line to take√

short-/medium-/long-term decisions.√ - Leaders are born√ with natural/

instinctive leadership skills.√ - A person becomes a manager

because he/she is appointed√ in the position/trained/qualified. √

- Guides/Leads people to√ become active participants. √

- Manages the process of getting things done√ by exercising authority. √

- Have power/influence√ because of his/her knowledge/intelligence/skills. √

- Have power/authority √ because of the position into which they are appointed. √

- Always trying to find more efficient ways√ of completing tasks.√

- Enforce rules on subordinates√ to ensure that tasks are completed.√

- Motivational/Inspirational√ in their approach. √

- Instructional√ in their approach.√

- People orientated. √ - Task orientated. √ - Lead by √ example/trust/respect. √ - Manage √ by planning/organising/

leading/ control. √ - Any other relevant answer related to

leadership. - Any other relevant answer related to

management. Submax (4) Submax (4)

NOTE: 1. The answer does not have to be in a tabular format.

2. The differences do not have to link, but must be clear. 3. Award a maximum of FOUR (4) marks if the differences are not clear/Mark either leadership or management only.

Max (8)



BUSINESS ROLES 4.5 Stages of team development 4.5.1 Storming√√ 4.5.2 Performing stage/Working as a team towards a goal√√ 4.5.3 Forming√√ (6) 4.6 Ways in which businesses could contribute time and effort in improving the

well-being of employees - Pay fair wages/salaries to the workers√ based on the nature of their work/the

prevailing economic conditions in the market.√ - Pay fair bonuses, based on business earnings√, as acknowledgement for hard

work and commitment.√ - Offer financial assistance in the case of any hardship√ caused by unexpected

medical costs.√ - Working conditions√ should include safety/medical/canteen facilities/ benefits

like housing/leave/retirement√ etc. - Offer annual√ physical/medical assessments to workers.√ - Make trauma debriefing/counselling/assistance available to any employee√

who requires these services.√ - Offer support programmes√ for employees infected and affected by HIV/Aids.√ - Start a nutritional programme√ so that employees can enjoy one meal per day

to keep them in a healthy condition.√ - Encourage employees to stay fit and healthy by getting them involved in

health activities√ to minimise stress/substance abuse/obesity.√ - Provide recreational facilities√ for employees.√ - Provide for employees' participation in decision making√ that affects them.√ - Allow flexible working hours√ to enhance productivity.√ - Make childcare facilities available√ on the premises for working mothers in the

business.√ - Give time to staff√ to get involved in projects they choose√/Allow staff to use

some of the working hours√ to participate in the projects of their choice.√ - Provide transport for employees√ who work unusually long hours.√ - Establish coaching and mentoring programmes√ for junior employees.√ - Conduct team-building sessions√ to improve employees' morale.√ - Encourage employees√ to attend capacity-building workshops/training

programmes/staff-development programmes/team-development programmes.√

- Any other relevant answer related to ways in which businesses could contribute time and effort in improving the well-being of employees.

Max (6) 4.7.1 Roles of the health and safety representatives from the scenario

- They will be responsible for checking the effectiveness of LCM's health and safety measures.√

- They should also identify potential dangers in the workplace.√ NOTE: 1. Mark the first TWO (2) only. 2. Only award marks for responses that are quoted from the

scenario. (2 x 1) (2)



4.7.2 Other roles of health and safety representatives in the workplace

- Investigate incidents/complaints from workers about health and safety.√√ - Initiate/Promote/Maintain/Review measures for ensuring the health and safety of

the workers. √√ - Attend to any formal inquiry/investigation into an accident/health related incident in

the workplace. √√ - Ensure that protective clothing is provided /available to all workers. √√ - Ensure that all equipment that is necessary to perform work are provided/

maintained regularly. √√ - Promote safety training so that employees may avoid potential dangers/act pro-

actively. √√ - Ensure that dangerous equipment is used under the supervision of

trained/qualified workers. √√ - Ensure that workers’ health and safety is not endangered by hazards resulting

from production/processing/storage/transportation of material/equipment. √√ - Co-operate with the employer to investigate any accidents/complaints from the

workers concerning health and safety in the workplace. √√ - Ensure that employers comply with COIDA. √√ - Any other relevant answer related to the other roles of health and safety

representatives in the workplace. NOTE: Do not award marks for responses quoted in QUESTION 4.7.1.

Max (6) [40]

BREAKDOWN OF MARKS

QUESTION 4 MARKS 4.1 4 4.2 4 4.3 4 4.4 8 4.5 6 4.6 6

4.7.1 2 4.7.2 6

TOTAL 40

TOTAL SECTION B: 80



SECTION C

Mark the FIRST question only.

QUESTION 5: BUSINESS VENTURES (INVESTMENTS & FORMS OF OWNERSHIP)

5.1 Introduction - The JSE is a formal market comprising of all the public companies that have

been listed.√ - Various services are offered to listed companies by the JSE.√ - Preference shares can be considered as a viable investment option as

investors have various options to choose from.√ - The National Treasury of South Africa issues RSA Retail Savings Bonds/

Government Retail Bonds to the general public.√ - A partnership is formed by a minimum of two partners and the maximum

number is unlimited.√ - Any other relevant introduction related to the JSE/types of preference

shares/RSA Retail Savings Bonds/Government Retail Bonds/factors contributing to success/failure of a partnership. Any (2x1) (2)

5.2 Functions of the JSE - Gives opportunities to financial institutions such as insurance companies to

invest their funds in shares.√√ - Serves as a barometer/indicator of economic conditions in South Africa.√√ - Keeps investors informed on share prices by publishing the share prices daily.√√ - Acts as a link between investors and public companies.√√ - Shares are valued and assessed by experts.√√ - Small investors are invited to take part in the economy of the country through

the buying/selling of shares.√√ - Venture capital market is made available on the open market.√√ - Orderly market for securities serves as a disciplined market for securities.√√ - Encourages new investments.√√ - Mobilises the funds of insurance companies and other institutions.√√ - Raises primary capital.√√ - Regulates the market for dealing with shares.√√ - Plans, researches and advises on investment possibilities.√√ - Ensures that the market operates in a transparent manner.√√ - Provides protection for investors.√√ - Encourages short-term investment.√√ - Facilitates electronic trading of shares/STRATE.√√ - Any other relevant answer related to the functions of the Johannesburg Securities

Exchange (JSE). Max (10)

5.3 Types of preference shares Participating preference shares√√ Shareholders: - are guaranteed minimum√ fixed dividends.√ - are entitled to share in any√ surplus company profits.√ - receive higher dividends√ when the company performs well.√ - have preferential rights over ordinary shares√ on repayment when the company

closes down.√ - Any other relevant answer related to participating preference shares.

Identification (2) Description (2)



Submax (4) Non-participating preference shares√√ Shareholders:

- receive an amount equal to the initial investment√ plus accrued and unpaid dividends upon liquidation.√

- do not have right to participate in profits√ after equity shareholders have been paid a dividend.√

- will not get extra dividend√ in case of surplus profits.√ - entitled to receive only a fixed rate of dividend√ every year.√ - Any other relevant answer related to non-participating preference shares.

Identification (2)


Cumulative preference shares√√ - Shareholders are compensated for past dividends that were not paid out√ when

profits were too low to declare dividends√/Receive dividends not√ previously paid out.√

- Any other relevant answer related to cumulative preference shares. Identification (2)


Non-cumulative preference shares√√ - Shareholders are not compensated for past dividends√ that were not paid out

when profits were low.√ - Any other relevant answer related to non-cumulative preference shares.


Submax (4)

Redeemable preference shares√√ - Shares can be redeemed/bought back at the option of the issuing company√,

either at a fixed price on a specified date/over a certain period of time.√ - Any other relevant answer related to redeemable preference shares.


Submax (4) Non-redeemable preference shares√√ - Shares are only bought back when the company closes down√ for reasons other

than bankruptcy.√ - Any other relevant answer related to non-redeemable preference shares.


Submax (4)



Convertible preference shares√√ - Shares can be converted into a predetermined number of ordinary shares√ on

the date specified when the preference shares were issued.√ - Any other relevant answer related to convertible preference shares.


Submax (4) Non-convertible preference shares√√

- Shares cannot be converted√ into ordinary shares.√ - Any other relevant answer related to non-convertible preference shares.


Submax (4) NOTE: Mark the first FOUR (4) only.

Max (16) 5.4 Impact of RSA Retail Savings Bonds/Government Retail Bonds on investors

Positive/Advantages - Guaranteed returns√, as interest rate is fixed for the whole investment period.√ - Interest rates are market related √ and attract more investors.√ - Interest can be received√ twice a year.√ - Investment may be easily accessible√, as cash may be withdrawn after the first

twelve months.√ - Low risk/Safe investment√, as it is invested with the South African Government

which cannot be liquidated.√ - It is an affordable type of investment√ for all levels of income earners including

pensioners.√ - Retail bonds are easily/conveniently obtained√ electronically/from any Post

Office/directly from National Treasury.√ - No charges/costs/commissions payable√ on this type of investment.√ - Interest is usually higher√ than on fixed deposits.√ - Retail bonds are listed√ on the capital bond markets/on the JSE.√ - Investors younger than 18 years/Minors may invest with the help of a legal

guardian√, which encourages saving from a young age.√ - Any other relevant answer related to the positive impact/advantages of RSA

Retail Savings Bonds/Government Retail Bonds on investors. AND/OR

Negatives/Disadvantages - Retail bonds cannot be ceded to banks√ as security for obtaining loans.√ - A minimum of R1 000 must be invested√, which may be difficult for some small

investors to accumulate.√ - Retail bonds are not freely transferable√ amongst investors.√ - Investors need to have valid SA identification/should be older than 18 years√

which may discourage foreigners/young people to invest.√ - Penalties are charged for early withdrawals√, if the savings is less than

12 months old.√ - Any other relevant answer related to the negative impact/disadvantages of RSA

Retail Savings Bonds/Government Retail Bonds on investors. Max (12)



5.5 Success and/or failure factors of a partnership

SUCCESS AND/OR FAILURE 5.5.1

- Peter and Teko should be actively involved in management and may use the ideas of other partners.√√

- Decision making can be time consuming as Peter and Teko have to be in agreement.√√

Man

agem

ent

- They should have access to each other's expertise when difficult decisions have to be made.√√

- Some management tasks may be neglected, as one partner may leave it to others to complete.√√

- Peter and Teko should decide who will be actively involved in management or rather appoint a competent manager.√√

- Peter and Teko may disagree on how to run the partnership, which may lead to tension between them.√√

- They are agents of the partnership and a bad management decision of a partner may be forced onto others.√√

- Different personalities/opinions could lead to conflict/ disagreements.√√

- Any other relevant answer related to the contribution of management to the success of a partnership.

- Any other relevant answer related to the contribution of management to the failure of a partnership.

Submax (4)

SUCCESS AND/OR FAILURE 5.5.2

- Easy and cheap to establish, as partners must draw up partnership agreement.√√

- Peter and Teko have unlimited liability as they are jointly and severally liable for the debts of the partnership.√√

Legi

slat

ion

- Peter and Teko should be motivated to make a success because their personal possessions are at risk.√√

- If one partner dies or retires, the remaining partner needs to draw up a new agreement.√√

- No regulatory requirements regarding the name of the business.√√

- Oral agreements between Peter and Teko can cause conflict between partners.√√

- Only subjected to the provisions of the Income Tax Act as compared to companies.√√

- A partnership is not a legal entity and cannot sue or be sued.√√

- Any other relevant answer related to the contribution of legislation to the success of a partnership.

- Any other relevant answer related to the contribution of legislation to the failure of a partnership.

Submax (4) NOTE: 1. The answer does not have to be in tabular format.

2. Mark either success AND/OR failure of EACH factor Max (8)



5.6 Conclusion

- Listed companies on the JSE will get more exposure to possible investors.√√ - Businesses should invest extra cash to generate more income rather than

leaving it in the businesses' current account.√√ - Dividends paid out on preference shares will attract more people to invest in a

company.√√ - Anyone can invest in RSA Retail Savings Bonds as it only requires a minimum

amount of one thousand rand.√√ - Various factors must be considered before choosing a form of ownership.√√ - Any other relevant conclusion related to the JSE/types of preference shares/RSA

Retail Savings Bonds/Government Retail Bonds/factors contributing to success/failure of a partnership.

Any (1 x 2) (2) [40]

QUESTION 5: BREAKDOWN OF MARK ALLOCATION

DETAILS MAXIMUM TOTAL Introduction 2

Max 32

Functions of the JSE 10 Types of preference shares 16 Impact of RSA Retail Savings Bonds/Government Retail Bonds.

12

Factors contributing to the success and/or failure of a partnership:

o Management o Legislation

8

Conclusion 2 INSIGHT

8 Layout 2 Analysis/Interpretation 2 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all.



QUESTION 6: BUSINESS ROLES (ETHICS AND PROFESSIONALISM)

6.1 Introduction - Businesses develop a Code of Ethics as a guide to make ethical decisions.√ - Many businesses have a Code of Conduct that outlines the expected behaviour for their

employees.√ - Unethical business practices can have a negative impact on businesses.√ - Successful businesses have developed strategies to deal with unethical business

practices.√ - The King Code principles serve as a guideline on how businesses can conduct

themselves ethically and professionally.√ - Ethical business practices treat all stakeholders honestly/fairly/ respectfully.√ - Any other relevant introduction related to ethical behaviour/unethical business

practices/application of King Code principles/professional, responsible, ethical and effective business practice.

Any (2 x 1) (2) 6.2 Meaning of ethical behaviour

- Ethical behaviour refers to acting in ways consistent with√ what society and individuals think are good values.√

- Ethical behaviour is expected√ from every employee in the business.√ - It means that the highest legal and moral standards√ are upheld when dealing

with stakeholders.√ Any other relevant answer related to the meaning of ethical behaviour.

- Max (4)

6.3 Unethical business practices posing a challenge to businesses Unfair advertising

- Unfair advertisements could be harmful√ to consumers.√ - The use of false or misleading statements in advertising leading to

misrepresentation of the concerned product√, which may negatively affect consumers.√

- Businesses can make unwise advertising choices√ when they are under pressure to increase their profits.√

- Some advertisements may be regarded as discriminatory√ because they exclude/target some sections of the population.√

- Any other relevant answer related to how unfair advertising can pose a challenge to businesses.

Submax (6) Pricing of goods in rural areas

- Some businesses in the rural areas exploit their customers√ by adding much more than necessary to their prices. √

- Some consumers in rural areas have little economic power√ and are vulnerable to exploitation.√

- Business may form monopolies in rural areas√ and increase their prices unilaterally.√

- It may be common practice to pay higher prices√ for goods of inferior quality in rural areas.√

- Business may form monopolies in rural areas√ and increase their prices unilaterally.√

- Any other relevant answer related to how pricing of goods in rural areas can pose a challenge to businesses.

Submax (6)



Taxation/Tax evasion

- Some businesses submit fraudulent/incorrect returns to SARS√ resulting in penalties.√

- Businesses may not be familiar with√ the latest changes in tax legislation. √ - They may pay heavy fines√ for evading tax.√ - Tax evasion may negatively impact √ on the business image.√ - Businesses may lose key stakeholders√ if the act of tax evasion is reported.√ - The accountant may charge high fees√ for falsifying financial statements.√ - Any other relevant answer related to how taxation/ tax evasion can pose a

challenge to businesses. Submax (6)

Max (18) 6.4 Application of King Code principles Accountability

- Businesses should be accountable/responsible for their decisions/actions.√√ - Businesses should present accurate annual reports to shareholders at the

Annual General Meeting (AGM).√√ - Top management should ensure that other levels of management are clear about

their roles and responsibilities to improve accountability.√√ - Any other relevant answer related to how businesses could apply accountability

as a King Code principle for good corporate governance. Submax (6)

Transparency - Decisions/Actions must be clear to all stakeholders.√√ - Businesses should give details of shareholders' voting rights to them before/at

the Annual General Meeting (AGM).√√ - Business dealings/transactions must be open/honest. √√ - Business policies and processes must be clear and understood by all

stakeholders.√√ - The board of directors must report on both the negative and positive impact of

the business on the community/environment.√√ - Any other relevant answer related to how businesses could apply transparency

as a King Code principle for good corporate governance. Submax (6)

Max (12)

6.5 Ways in which professional, responsible, ethical and effective business practice should be conducted

- Mission statement should include values of equality/respect.√√ - Treat workers with respect/dignity by recognising work well done.√√ - Treat all their employees equally, regardless of their race/colour/age/gender/

disability etc.√√ - All workers should have access to equal opportunities/positions/resources.√√ - Plan properly and put preventative measures in place.√√ - Pay fair wages/salaries which is in line with the minimum requirements of the

BCEA/Remunerate employees for working overtime/during public holidays.√√ - Ensure that employees work in a work environment that is conducive to safety/

Fairness/free from embarrassment.√√



- Refrain from starting a venture using other businesses' ideas that are protected

by law.√√ - Engage in environmental awareness programmes/Refrain from polluting the

environment, e.g. by legally disposing of toxic waste.√√ - Employers and employees need to comply with legislation with regard to equal

opportunities/human rights in the workplace.√√ - Businesses should develop equity programmes/promote strategies to ensure that

all employees are treated equally regardless of status/rank/power.√√ - Training/Information/Business policies should include issues such as diversity/

discrimination/harassment.√√ - Employers should respond swiftly and fairly to reported incidents of discrimination

in the workplace.√√ - Orders/Tasks should be given respectfully and allow the recipient/employee to

have a say in the manner in which the task should be performed.√√ - Any other relevant answer related to ways in which professional, responsible,

ethical and effective business practice should be conducted. Max (12)

6.6 Conclusion

- A business code of ethics/conduct should improve relationships and eliminate unethical business practices.√√

- Employees who do not adhere to the code of ethics/conduct should face disciplinary actions.√√

- The King Code principles can be applied to all entities, private and public sectors.√√

- Businesses can make use of good corporate governance to address issues that challenge ethics and professionalism in the workplace.√√

- Any other relevant conclusion related to ethical behaviour/unethical business practices/application of King Code principles/professional, responsible, ethical and effective business practice.

Any (1 x 2) (2) [40]


Copyright reserved

QUESTION 6: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL

Introduction 2

Max 32

Meaning of ethical behaviour 4 Unethical business practices posing a challenge:

o Unfair advertising o Pricing of goods in rural

areas o Taxation/ Tax evasion

18

Application of King Code principles:

o Accountability o Transparency

12

Ways in which professional, responsible, ethical and effective business practice should be conducted.

12

Conclusion 2 INSIGHT

8 Layout 2 Analysis/Interpretation 2 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40

LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all.

TOTAL SECTION C: 40

GRAND TOTAL: 150

national senior certificate grade 12...• explanation 1 mark (two marks will be allocated in...

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